Chile Gov't Rejects HidroAysen Power Project, Appeal in Cards

A special Chilean ministerial committee on Tuesday canceled the environmental permit for the HidroAysen energy project, which has come under fire from environmentalists who say it would wreck pristine valleys in Chile's wild south.

Cancelation of the permit was the final administrative decision on the project, but HidroAysen can still take its case to courts, suggesting more bitter legal wrangling over the fate of the 2,750 megwatt project.

The HidroAysen joint venture, made up of leading generators Endesa Chile and partner Colbun, says the massive complex is an environmentally friendly way to meet the Andean country's soaring energy needs.

(Reporting by Felipe Iturrieta; Editing by David Gregorio)